DeFi protocol tied to rug pulls targeted by a crypto sleuth

An anonymous investigator into the blockchain world, known by his handle of ZachXBT, has once again put investors on alert about a DeFi protocol he found to be suspicious

According to ZachXBT, Leaper Finance, a lending protocol based on Blast, is tied to a group which is in turn responsible for several rug pulls. Rug pulls are practices whereby the owners of a project raise funds but then discontinue the project, making away with the funds instead.

ZachXBT now alleges that Leaper Finance is tied to the same people who pulled the rug on Magnate, costing investors $6.5 million, Solfire, costing investors $4.8 million, and Kokomo, costing investors $4 million. Another such project, Lendora, was also named but no details about the size of the alleged fraud was said.  Sharing his thoughts on X, ZachXBT had this to say:

“In the past they let the TVL grow to 7 figs before stealing all of users funds deposited to the protocol and falsify KYC documents + use low tier audit firms. They now have launched scams on Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, Avalanche, etc”

Leaper Finance did defend themselves in what was one of the most bizarre manners possible. “Nice work!,” the official X account of the project said. “My comrades here at Lazarus fear you yet admire you!,” the post continued, referencing to the Lazarus Group, one of the most capable hacker collectives tied to North Korea and responsible for billions worth of damages.

The post continued “We’d like to trade important intel with you, since I ‘ll be deported&assassinated soon,” which was either an open threat to ZachXBT or just a reference that Leaper Finance itself will shut down. The post also announced a token launch with a presale address, making it all the stranger. ZachXBT was correct though as Leaper Finance’s website and X account disappeared shortly after the exchange.

In the meantime, Immunefi, a blockchain security firm has warned that over $200 million has been stolen to crypto hacks and rug pulls in January and February of 2024 already.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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